Regulatory Actions and Changes in Management
In 2022, the Commodity Futures Trading Commission (CFTC) prohibited Polymarket’s international exchange from operating in the U.S. Following this, the New York-based prediction market firm assigned “operator” duties for the exchange to Adventure One QSS, a newly established entity in Panama.
CFTC Settlement Details
The CFTC’s settlement addressed Polymarket’s compliance regarding U.S. customers not betting on its platform. The company has not confirmed if the transfer of operations to a foreign entity was part of the agreement or simply a precautionary action.
Limited Information on Adventure One
Polymarket, officially known as Blockratize Inc., has shared scant details about Adventure One, indicating only that the international platform operates independently and is not CFTC-regulated.
Corporate Structure and Relationships
The relationship between Polymarket and Adventure One raises questions about the corporate structure, particularly since Polymarket also operates a U.S.-based prediction market subsidiary called QCEX, valued at approximately $9 billion. While media sources describe Adventure One as functionally separate, corporate documents suggest a deeper connection.
Leadership Overlap and Lack of Transparency
Polymarket CEO Shayne Coplan serves as a director at Adventure One, having briefly held the position of president. Harry Jones, who works in global affairs at Polymarket, currently presides over Adventure One. However, the entity’s online presence is limited, and no LinkedIn profiles indicate current or past positions related to it.
Confusion Between Operations
Polymarket has not clarified the distinction between its international exchange, reportedly managed by Adventure One, and QCEX, its newly licensed U.S. subsidiary. Both exchanges are promoted using the same social media accounts.
Regulatory Jurisdiction Challenges
Despite the CFTC’s ongoing oversight, there is no clear indication that it believes Adventure One has violated any regulations. An ongoing investigation by the FBI into Polymarket recently concluded without further action. Jurisdictional complexities arise regarding the extent of regulatory authority over exchanges primarily catering to non-U.S. customers, especially those that engage in IP-masking tactics like VPNs.
